Phil Grossfield's Blog

RATES IMPROVED!  HELLO! 
HAPPY PASSOVER, GOOD FRIDAY & GOOD MORNING!

My Schedule…and A Little Extra:   Yesterday, I learned our water heater was leaking.  Hello!  of course, this happens while I’m away in Scottsdale AZ.  Thank goodness my good friends and neighbors were there to turn it off before it destroyed the place.  Anyone know the best and least expensive way to buy and install a 75gal water heater?   |   If you’re a Master’s Golf follower, then root for Tiger, I insist.   |   Click here to read my Cystic Fibrosis post and click here to read my wife’s post and charitable contribution request.   Mystery Lyric:  She’s Walking down the street, Blind to every eye she meets — Do you think you’ll be the guy, To make the queen of the angels sigh? — Answer.   My Market Watch:  The Jobs Report, which is usually one of the biggest market movers each month has not disappointed this morning…rates have moved significantly better!  The report was expected to show 200,000 new jobs in March but only came in at 120,000…that’s a big difference and sends a clear message to traders that the economy is not doing well.  Remember, when traders feel the economy is weak, they typically liquidate stocks and put their money into bonds…and when bonds increase, rates get better.  Hello!   My Schedule:  I am working until about 2p or 3p today and then will be off the clock as I suspect most of you will be too.  If course, I am available by phone but I’m more likely to respond to a text after 2p, you dig?  Have a great weekend y’all!

Pricing Engine (password required)     Rate Sheet for Today     InterBank Product Matrix

For a Clean Underwriting Decision:

• FOLLOW YOUR DU EXACTLY…do not send documents DU does not require.
• We follow DU findings on Tax Returns but we always require 2-years 4506T…if DU only requires one year of returns, then only send one year.  EXCEPTIONS:  please keep in mind that if there is Interest/Dividend income, then two years are required per FNMA and DU should capture this.  If you have Schedule E income or unreimbursed expenses are filed, then two years tax returns are required to validate 2 year history/trend.  The UW also has discretion to request 2 years if there is a compelling reason…for example, if the borrower works for a spouse, then 2 years would be required.
• Always send the K-1s along with the returns, whether or not the income is used.
• Only send the asset statements required to close the loan. Do not send retirement accounts, or more than one (1) months bank statements, unless the DU requires additional statements.
• Send all pages of bank statements.
• Large deposits must be sourced and documented.  Large deposits are defined as deposits exceeding 50% of the borrower’s gross monthly income, in either a single deposit, or cumulative deposits in a month.
• If the borrower owns other property(s), then you must always document the tax/insurance/HOA expenses. The best method is with the tax returns Schedule E.  It is highly recommended you get tax returns if the borrower owns rental property, even if you document these expenses otherwise, as the transcripts will show Schedule E earnings, causing Interbank to require the returns; but only one (1) year of returns is required.
• We always require a letter of explanation on any inquiries, excluding the mortgage inquiry, or inquiries within the last 120 days.
• We always require proof of borrower’s residency status as a prior to close condition.

• There is no flood fee, tax fee, etc.
• Appraisal Waivers accepted with $75 waiver fee
• Appraisal Fees may be reimbursed at closing.
• Processing Fees may be charged to the borrower on borrower-paid transactions.  For lender-paid transactions, outsourced contract processing (NMLS Licensed) is considered a 3rd-Party Fee and therefore may be covered by YSP overage/excess rebate.
• YSP overage (excess rebate) may be used towards 3rd-Party Fees, Contract Processing (NMLS licensed), Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.